That would be a wire that has overheated due to very high current level. Fix the problem and it will stop. because polyvinyl chloride does not burn by itself.
But if it is the core in the PSU, you will have to replace the PSU. Once the core begins to smoke, the damage is permanent and it will give you trouble. The PSU shooed shut down whenever there is an overload. even after the
If grease had been split on the motherboard,you will have to clean it off with alcohol and water. Rubbing Alcohol will do nice job
Also, a fusible device will give of smoke, but just for a beef second.